Navigating the Future: The Steady Commitment to Tackling Methane Emissions
The political landscape in North America is shifting. Will these changes diminish methane as a critical issue?
In this post, Dr. David Risk breaks down several market trends, suggesting the momentum for addressing methane emissions will persist despite the potential for federal-level regulatory changes.
Momentum
The Global Methane Pledge continues to grow to now 159 countries, with signatories expanding to include countries with traditionally higher emission profiles. The regulatory and policy focus has broadened beyond oil and gas, incorporating sectors like waste and agriculture. North American methane rules for oil and gas no longer exist in isolation—they are now part of a broader, interconnected global and multi-sectoral framework driving action. Beyond The Global Methane Pledge, examples of additional voluntary oil and gas emissions reduction/disclosure/monitoring initiatives which have seen significant recent traction include:
These industry-wide initiatives focus on creating a collective effort to tackle methane emissions in the oil and gas sector. They promote best practices, share technologies, improve transparency, and set industry standards for methane detection, measurement, and reduction.
Transparency
In 2019, emissions detection relied on private satellites with limited capabilities and government satellites offering coarse spatial data. Today, advances in remote sensing mean entire production basins can be monitored on a daily or weekly basis. Initiatives funded by governments and philanthropy alike have driven this progress. The result? Emissions are increasingly traceable to individual operators, shifting accountability directly onto companies.
Markets
Global energy markets are embedding methane standards into trade. Europe has introduced stringent benchmarks for methane intensity, barring high-emission products from entry. For over half a decade, some jurisdictions have valued “certified” low-methane gas, potentially at premium prices. These import/export market dynamics are incentivizing sustained methane action and verification.
Local Action
Environmentally conscious states and provinces are doubling down on methane regulations, while others may move to relax them. For companies operating across jurisdictions, inconsistent rules present operational and reputation risks – which should drive some level of consistency.
Individual Corporate Goals
According to the Carbon Disclosure Project (CDP) and Net Zero Tracker reports, more than 50 major oil and gas companies have now publicly set emission reduction targets, with many aligning with net-zero goals by 2050 or earlier. Despite regulatory uncertainty at a federal level, we have seen individual corporations continue to demonstrate leadership and stand by their publicly declared emissions targets as part of a broader ESG initiative.
Solutions
Five years ago, scalable methane measurement and mitigation technologies were limited and costly. Today, sensor costs have dropped, and the global demand has catalyzed innovation. The service sector now offers a range of cost-effective solutions, particularly for addressing the major emissions sources—and many jurisdictions are still moving through this nascent phase of methane action.
In conclusion, While setbacks are likely, I don’t foresee North America retreating to a standstill of methane inaction. The tools, pressures, and momentum to address the issue are robust enough that we expect they will withstand federal level changes in methane regulatory policy.
Are you having difficulty navigating methane regulations in the various jurisdictions of your operations? Are you seeking cost-effective solutions for reducing methane emissions? Arolytics can assist you in implementing robust emissions monitoring strategies and data management practices that ensure compliance and transparency. Let’s discuss how we can support your 2025 emission priorities, reach out at info@arolytics.com.
